BUS-644-Week-3-Assignment-A-Randolph

Apr 28th, 2015

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Ashford University

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Outsourcing is defined as the strategic use of outside resources to perform activities traditionally handled by internal staff and resources. Outsourcing is an organizational strategy by which the organization contracts out major functions to specialized and cost efficient service providers, who become valued business partners.

Week Three AssignmentAntdrone R. RandolphBUS 644 Operations ManagementAshford UniversityInstructor Arthur BaldonadoMonday October13, 2014 Outsourcing is defined as the strategic use of outside resources to perform activities traditionally handled by internal staff and resources. Outsourcing is an organizational strategy by which the organization contracts out major functions to specialized and cost efficient service providers, who become valued business partners. Some companies even transfer some of their own employees to these outsourcing company (Vonderembse & White, 2013). In todays global economy, outsourcing is the single most significant way in which companies are able to cut cost with a focus on increasing the bottom line, or profit margin of the company. This report will give a thorough examination of outsourcing and the reasons behind it. First this report will analyze the trade-offs between inputs for productivity improvements, and the pros and cons of global sourcing versus producing in the U.S. Next, this report will give an example of one of these outsourced products or services. Finally, a low-labor-cost country will be recommended based on inputs, trade-offs, and going global advantages.Even though outsourcing is increasingly becoming the fashion in which many global corporations do business, there are a few trade-offs, or sacrifices these corporations must make in order to improve productivity. One of the main trade-offs are the jobs of the dom